Bank wants to focus on growing its retail mortgage lending business
CFBank has announced that it is set to wind down its direct-to-consumer (DTC) mortgage lending operations, citing volatility in the residential mortgage market.
“CFBank’s decision to wind down its DTC mortgage lending business resulted from changing market conditions during 2021, as the residential mortgage market has experienced price volatility, diminished refinance volumes, margin compression and increased market competition, among other factors, which have led to a challenging environment,” CFBank said in a statement.
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The Columbus, Ohio-based commercial bank has suspended origination of new rate-lock commitments through its DTC mortgage lending business, effective June 30. According to its Press release, the bank will continue to close out its existing loan pipeline and commitments in the next few months.
“CFBank opportunistically entered the DTC mortgage lending business in 2018, and we have benefitted from this timely business decision,” said Timothy O’Dell, president and CEO of CFBank. “The DTC mortgage lending business has been a significant driver of fee income for CFBank over the past two years, and the fee income generated from this business has allowed CFBank to invest in expanding its footprint and presence, along with building capital.
“The investments we have been able to make over the past few years in cash management staff and capabilities is producing significant growth in non-interest-bearing deposits, along with accompanying fee income generated through cash management products and services, while the investments in our commercial lending staff have resulted in our commercial loan pipelines being at all-time highs.”
Going forward, O’Dell said that CFBank would increase its focus on its retail loan origination business.
